Answered: If we deposit rs 1000 today calculate…

If we deposit rs 1000 today calculate the time taken for the deposit to double if the interest rate is 10% , compounded annually using a- future value method b-rule 72 c- rule 69

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

See similar textbooks

Related questions

Q: am. 136.

A: Let's solve each part of the problem:1. **Present Value of the Annuity:** We can use the present…

Q: A lender is promised a $100 payment (including interest) one year from today. If the lender has an…

A: A lender is promised $ 100 payment including interest one year from today. Simply stating, A lender…

Q: You are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after…

A: All deposits will happen at the start of each year. So, the first payment will be at start of 6th…

Q: Investment A will make N annual payments of $300.00 with the first of the N payments Investment A…

A: In ordinary annuity there are payments at the end of period and in annuity due payments are…

Q: What is the future value of a $1000 annuity due over 12 years at an interest rate of 12%? (TVM)

A: Future value of annuity due = Annuity amount * FVAD of $1

Q: What APR is being earned on a deposit of $5,000 made 10 years ago today if the deposit is worth…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Waiting for Answer

A: Step 1: Given Value for Calculation Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = c…

Q: Suppose that the mortgage loan described in question 10 is a one-year adjustable rate mortgage…

A: To Find: New Monthly Payment

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: Suppose for an annuity due, you want to have S30,000 in the bank after 20 years. Assuming you make…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…

A: The first step is the calculation of the real rate of return. The nominal rate of return is 6.00%…

Q: your given the following information about a home loan: loan amount 300000 number of years 25 years…

A: The internal rate of return in banking industry is the rate of return at which the present values of…

Q: what will be the value of the $333.976 deposit in 120 days if I calculate the annual interest rate…

A: The future value of the money refers to the value at the future period of time at a certain rate of…

Q: 10. If P 11 200 is the present value of P 13 700 due at the end of 16 months, find a. discount…

A: The conceptual formula used:

Q: Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest…

A: Semiannual interest rate = 8% / 2 = 4% Number of Semiannual periods = 4 years * 2 = 8 periods…

Question

If we deposit rs 1000 today calculate the time taken for the deposit to double if the interest rate is 10% , compounded annually using a- future value method b-rule 72 c- rule 69

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Answer & Explanation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

For the follwing case, determine the number of years it wll take for the intitial deposit to grow to equal the future amount the given interest rate. Initial Deposit Future Amount Interest Rate $9,998 $18,400 17%
QUESTION 5 What is the present value of an annuity (to nearest dollar) that will give you 25 payments of $1,000 and the first payment is in one year from today? Assume an interest rate of 10 percent. O 9169 O 8981 O 8421 O 9077 O 8514
Use the following 10% present value factors: N 1: 0.9091 N = 2: 0.8264 N= 3: 0.7513 Assume you wish to receive $1,000 at the end of two years. Assuming an interest rate of 10% what amount would you need to deposit todayin order to receive the S1, 000? Round to the nearest penny if necessary.
What is the future value of a $1000 deposit made today, in 7 years, if r = 10% APR compounded annually?
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Consider a perpetuity that pays £500 per year with its first payment at the beginning of t=5. What is its present value today (t=0), given an 8% discount rate? A) £2678.7. B) £2135.6. C) £4593.9. D) £4253.6.
What will a deposit of $4500 at 7.8% compounded semiannually be worth if left in the bank for six years? Use the TMV calculator to fill in the table. N I% 7.8 PV -$4500 PMT 0 FV P/Y C/Y 2
What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%? Select one: a. RM413,090.78 b. RM415,879.09 c. RM500,636.16 d. RM413,790.89
Problem 7.6. Annuity payments Suppose that a fixed-payment 15-year annuity has present value of Rs 2.5 million The annuity earns a guaranteed 9 percent annual return. If the payments are to begin at the end of current year, what is the annuity payment from this fixed- payment annuity?
Use the following 8% interest factors to answer the question below: Future Value of Ordinary Annuity. 8.92280 10.63663 12.48756 What amount should be recorded as the cost of a machine purchased December 31, 2023, which is to be financed by making 8 annual payments of $10,000? Each payment is made at the end of the period. The applicable interest rate is 8%. Present Value of Ordinary Annuity. 5.2064 5.7466 6.2469 7 periods 8 periods 9 periods hs